[SINGAPORE] Internet service provider NetLink NBN Trust posted a 6.9 per cent decrease in net profit to S$46.9 million for the second half ended Mar 31, 2025.
NetLink’s earnings were impacted by higher depreciation and amortisation, lower income tax credit and higher finance costs, it said in a regulatory filing on Thursday (May 15).
Revenue for the half was down 1.8 per cent year on year to S$202.2 million, primarily due to a S$3.2 million reduction in ancillary project turnover from fewer work orders. The availability of project opportunities fluctuates from year to year, it added.
Distribution per unit edged up by 1.1 per cent to S$0.0268 from S$0.0265. The business trust has a policy to distribute all of its cash available on a semi-annual basis. Depreciation and amortisation expenses increased by S$3.6 million, in line with continued network assets expansion.
Income tax credit dipped by S$1 million due to a reversal of current and deferred tax expenses from finalisation of tax assessments for prior periods. Finance costs were S$500,000 higher, despite a slightly lower average interest rate, largely due to a S$46 million loan drawdown during the period
Net profit for FY2025 stood at S$95.4 million, 7.6 per cent lower compared to FY2024, driven by increased depreciation and amortisation, and higher finance costs. Revenue was S$407 million, 1 per cent lower, primarily due to S$6.2 million lower ancillary project revenue from fewer work orders.
Units of NetLink closed flat at S$0.92 on Thursday, before its financial results were made public.
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